Changes to estate planning law - intestacy
Several changes are coming into force over the next few months, which are worth mentioning now following the Inheritance and Trustees Powers Act 2014 gaining Royal Assent.
Where a couple are married or in a civil partnership but have no children, ALL assets will pass to the survivor.
Where the same couple has children, then after payment of the statutory legacy of £250,000 to the survivor, the remainder of the residuary estate is now split 50% to the survivor and 50% to the children – the requirement for a life interest to the spouse / civil partner has therefore been removed.
The definition of chattels has been brought into the 21st century(!) – they are now defined as ‘tangible moveable property other than…such property which consists of money or securities for money, used at death for mainly business purposes, assets solely owned at death for investment purposes. It makes it a whole lot clearer now that there is now no mention of carriages or stable equipment and scientific instruments within the definition!
This message was added on Monday 7th July 2014